Subscriber Discussion

Non-Disparagement Clauses In Your Customer Contracts Are Voided

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Ari Erenthal
Mar 24, 2017

If you do, they're now void and must be removed, thanks to the new Consumer Review Fairness Act. Non disparagement clauses, which businesses used to go after consumers who gave them bad reviews on websites such as Yelp, have been long hated. Now they're illegal. For example, Kirschenbaum's contracts including those clauses and now they are informing their customers they are void.

Have you ever added a non disparagement clause to your contracts? If so, what will you do to combat bad online reviews now?

(1)
UI
Undisclosed Integrator #1
Mar 24, 2017

How is this a thing?  I have never added it to a customer contract, nor have I seen it added.  I have seen it in one vendor contract with us though.  While there is always "that customer" it seems ridiculous that anyone would want to muzzle someone this way to start with.

There is clearly something wrong with our society when every activity has to have a 200 page EULA, a non-solicit, an NDA, and a non-compete.

(4)
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Armando Perez
Mar 25, 2017
Hoosier Security and Security Owners Group • IPVMU Certified

We use the kirschenbaum contracts, and I've even paid him when I had some legal questions. He is very good at what he does, I believe the best. But remember to look at almost everything he does through the lens of "how does this help kirschenbaum sell more contracts?" Everything he does is to generate revenue as directly as possible. He adds value, but it's all about selling contracts. Why charge an hour to proofread something when he can just sell you a shiny new version of the contract?

 

That said, I'll have to go back and see if our version has this clause, I don't remember that being in there and if it was it was very likely removed along with his suggested 10 year term...

JH
John Honovich
Mar 25, 2017
IPVM

Armando, in terms of the Kirschenbaum's contract, a non disparagement clause is beneficial for the supplier and, maybe even more importantly, future acquirers, since it reduces risk / cost of customers complaining about one's service.

Obviously, the problem is that it runs against basic American values of free speech.

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